Zara owner's profits rise 25%

Cost-conscious consumers across Europe have been flooding into the Zara and Bershka shops of budget fashion group Inditex, boosting the Spanish group's profits by 25% last year.

Europe's biggest fashion chain saw profits of €1.25 billion (£990 million) last year, which was well ahead of most analysts' expectations.

With its latest range of billowy print dresses and tulip-shaped skirts, Inditex - like its rival Hennes & Mauritz - is benefiting from the slowdown in economic growth across Europe, which is forcing shoppers to switch from high-priced luxury brands to better-value alternatives.

Inditex opened 560 new stores last year, taking its total to 3,691. It plans to open at least that many again this year.

This will include a new chain called Uterque selling accessories and shoes. Inditex said it will move into another four countries - South Korea, Ukraine, Egypt and Montenegro - meaning it will be trading in 72 countries.

Total sales rose by 15% last year to €9.43 billion while same-store sales, excluding new openings, increased by 5%.